Smart processes Point of View 2017

1. Smart Processes to Win in a Digital Era
How Do You Know What Really Happens in Your
Processes?
Business Transformation Services
2017
SAP Point of View

2. Operational effectiveness
and agility – the ability to
respond quickly to
changing business
requirements and market
trends – can be a strategic
competitive advantage
for your organization. SAP
has played and continues
to play a big role in
supporting intelligent
business operations.

3. The Future of Business is Now
Executive Summary
Applications from SAP, like those for enterprise resource
planning (ERP), supply chain management (SCM), customer
relationship management (CRM), and supplier relationship
management (SRM), have helped organizations standardize
core processes and automate business operations for
operational effectiveness and efficiency.
Over the past few years, we have seen key trends and
challenges in several industries. First, managers and
employees demand a superior user experience,
transparency, and value. Second, the increased pace of
business, new channels to engage your customers, and
greater volumes of operational data have led to the rise of Big
Data in business operations. Third, employees across
different departments, lines of business, even different
companies, strive to be closely engaged in the value stream.
Thus, they demand real-time intelligence and visibility into
operations to improve responsiveness to possible threats and
opportunities. Fourth, we see the rapid emergence of
knowledge work, where line-of-business users need a goal-
oriented, collaborative approach toward achieving business
outcomes, as opposed to structured, sequential, repetitive
work.
The Need for Business Process Orientation
No matter what industry you operate in, you recognize
that operational excellence and consistent execution of day-
to-day business operations significantly improve customer
satisfaction and lead to long-term stability and business
success. Research strongly suggests that companies can
enhance the performances of their daily business operations
by taking a “process view” of the organization.
Business process and value stream orientation have been
proven to reduce interdepartmental conflicts, improve
cross-functional collaboration, and significantly increase
customer focus. The fast pace of modern business, a
volatile competitive landscape, the explosion of information –
both structured and unstructured – from multiple channels,
and the demands from IT consumerization have a huge
impact on business operations. Departments within
companies can no longer work in isolation. Organizations
have to move away from the splintered and siloed views of
business to “big process thinking,” which Forrester defines as
end-to-end business scenarios with the aim to maximize
value for customers, with a particular focus on a sustainable
and enterprise-wide business process transformation
approach.
How Can SAP Help?
Nowadays, in a global digital economy, it is fundamental for
winning companies to have full control of all processes in
each organizational unit, to learn from them, and to improve
day by day. SAP can help address three main, though simple,
questions:
1. How do you learn about harmful bottlenecks,
inefficiencies, and compliance issues?
2. How fast can you get insights into your processes?
3. How do you find out where to improve your processes?
Next Steps
Kick-start a “discovery workshop” with Business
Transformation Services in order to pinpoint the painful
process domains you would like to learn from, and start
digging with our professional consultants.
SAP proprietary and confidential | 3

4. Reimagine Your Company
4 | SAP proprietary and confidential
Our mission is to lead the global “servitization” in the new
digital economy, helping companies reimagine their business
using SAP’s digital business framework. Success for our
customers means that they can adapt to the digitization era
and thrive in their industries. The challenges our customers
face are significant. How can an enterprise achieve a higher
degree of flexibility on end-to-end business processes, often
running on a complex and heterogeneous legacy of IT
systems? How can it leverage the company’s Big Data within
operational processes, in real time, to make them “situation
aware”? How can it infuse more intelligence into operational
decisions? And finally, how can it do all this in the short term,
with low risk and no disruption?
The innovative technology paradigm that covers these questions is a key competitive advantage, that
Gartner defines as an approach supported by real-time analytics and decision management technologies
that are embedded into the core business processes of a company.
Digital business framework
What happened? – Process mining
What is happening and what is
going to happen? – Real-time
visibility

5. How Can You Reimagine Your Company?
A digital business framework is the “holistic answer”
SAP has developed a structured framework to help in developing and executing on your digital
business strategy: the digital business framework. With this framework, the entire value
chain will be digitized, including the core, which serves as the platform for innovation and
business process optimization. Every company can develop a digital strategy across the above-
mentioned pillars.
1 2 3
SAP HANA PLATFORM
Workforce
engagement
Supplier
collaboration
Business networks
Customer
experience
Omnichannel
Assets and the
Internet of Things
Digital core
SAP HANA
Cloud Platform
SAP Fiori
SAP proprietary and confidential | 5
SAP Hybris Cloud
for Customer

6. A new in-memory computing paradigm is the
ultimate simplifier and the platform for innovation
and digital business.
With SAP S/4HANA, businesses can now run in real
time, integrating predictive, mobile, and Big Data,
and will ultimately change how we work, how we run
our businesses, and how information is consumed.
SAP provides the tools for total
workforce engagement to
attract the best workforce across
full-time employees and
contingent labor, manage the
total workforce lifecycle, and
provide smarter apps with a
greater user experience.
SAP HANA, with the power
of mathematics and design,
helps you achieve the
unthinkable by leveraging
information from physical
assets, digital assets, and
the Internet of Things.
SAP S/4HANA gives
You incredible capacity
to digitize business
processes across your
business. But, it is the
connections to the
business network that
allows tou to extend
those processes
beyond your four walls.
Customers demand
simple, seamless,
personalized
experiences across any
channel, anytime and
anywhere.
How Can You Reimagine Your Company?
A digital business framework is the “holistic answer”
1 2 3
SAP HANA PLATFORM
Workforce
engagement
Supplier
collaboration
Business networks
Customer
experience
Omnichannel
Assets and the
Internet of Things
Digital core
6 | SAP proprietary and confidential

7. Going digital creates new challenges for your processes and how you manage them: Digitization makes
your processes more effective, but it entails new levels of complexity and requires a greater speed of
action to correct the course of a given process instance.
SAP proprietary and confidential | 7
Digitization
Process complexity
Interconnections
between factors not
previously connected,
networked reality
Process
effectiveness and
efficiency
New actors
New data sources for
events and additional info,
structured and unstructured
+
-
+
+
+
+
Process
intelligence tools and
methodologies
+
-
+
Without adding intelligence to your processes, increasing complexity can jeopardize the
advantages brought about by digitization.
Why Intelligent Processes Right Now?
From digitization to process intelligence
1 2 3

8. When you run a process supported by an IT solution, you not only get documents and functionalities; as a
“side effect,” you disseminate logs and other data related to how the process flows. When mining this
treasure of data with the right tool, you become able to discover how the real process is running, what the
variants are, the lead times, and bottlenecks.
This analysis is further enriched by correlating the data with the attributes of the process instances, highlighting recurring
phenomena and patterns. In this way, process improvements can be carried out starting from data-based evidences – no
more gut feelings, no more time and effort-intensive, top-down process analysis requiring endless discussions between
different process stakeholders.
Process Mining: Understand What Happened
Discover the treasure hidden in your data
Only 42% of companies say that they know how to extract
meaningful insights from the data available to them.
Oxford Economics, Workforce 2020
1 2 3
Illustrative printouts of SAP Process Mining by Celonis
8 | SAP proprietary and confidential

9. Many processes are complex: different organizations are involved with different IT systems to support the
end-to-end flow. Understanding how the process is running can be challenging; the key is detecting possible
delays and upcoming process breakdowns before it’s too late.
Embedding intelligence into your processes allows you to get real-time information about how your process is performing, to
understand which process instances are at risk, and to select the most critical ones according to the criteria you define. In this
way, you not only keep your finger on the pulse of the process at all times, but you're able to easily determine where to
prioritize your efforts to ensure a smooth process execution.
74% of companies believe that business complexity hurts their ability to meet their goals.
Knowledge@Wharton, Business Simplification 2015: The Unmet Strategic Imperative
SAP proprietary and confidential | 9
1 2 3
Real-Time Visibility: Understand What’s Going to Happen
Focus your efforts where they matter most
Illustrative printouts of SAP Operational Process Intelligence

10. Intelligent business operations are adopted by every industry and every line of business. Examples of the
new approach can be seen in all industries, because every organization today finds it hard to cope with
challenges posed by complex processes.
As a real-life case, a company operating globally had difficulties in standardizing the accounts receivable and credit
management processes across the different countries in which it operates, with low visibility on the real process flow variants
and overall lead time. Intelligent business operations helped the company achieve real-time monitoring of the overall
processes, allowing a deep dive into the single process instances according to given parameters. In this way, for instance, the
days sales outstanding (DSO) was dramatically reduced with a 28% rate.
A Call to Action
Infuse intelligence into your operational processes
Digital use cases
10 | SAP proprietary and confidential

11. Why SAP?
Leverage your existing landscape with no disruption
With SAP’s approach, you can leverage your existing applications, embedding the process intelligence
layer according to your needs for a paced approach, from gaining visibility to allowing continuous process
improvement.
Our inspiration: “We remain focused on the success of our customers – they are
at the heart of our ambitions. The passion of SAP employees has brought
amazing momentum … our best-ever financial results …are testament to our
strategic direction, our customer orientation, and our world-class employees.”
Bill McDermott, CEO, SAP
SAP proprietary and confidential | 11
Front-end capabilities, mining, monitoring, and reporting
End-to-end process intelligence and optimization
Event-driven integration services
Process and
data
modeling
Existing landscape
(on premise/cloud and SAP/non-SAP)
Unstructured
events
0010110101
0010101001
0101011110
000101
Illustrative logical landscape

12. To support the transformation towards a business-processes-driven enterprise, SAP and Business
Transformation Services will provide a case for change and a path to get to the desired end state,
strengthening the dialog between business and IT as part of this effort.
Start realistically and, with a quick-win approach, go live as quickly and smoothly as possible. Less is often more – the
scope needs to be quickly achievable – and speed of implementation is key to adopt and improve with an iterative approach
on real-life data.
SAP will leverage a proven engagement methodology, with the aim to drive the adoption of
new approaches and models and optimize the benefits realized with a value-based approach.
Why SAP?
How to kick-start with a quick-win approach
• “As is” and constraints
• Goals
• KPIs and measures
Scoping Preparation
Analyze and
design
Build and deploy Adopt and improve
• Build the plan
• Identify stakeholders
• Set project team
• Run kickoff
• Design and execute
communication within
the organization
• Process maps
• Detail the KPIs to be
monitored
• Design data flow and
upload procedures
• UI design for operational
and decision making
processes
• Assess data volumes
and size of infrastructure
• Design technical and
solution landscape
• Procure and install
technical infrastructure
• Configure process
structure
• Realize measures and
calculations
• Build the integration
• Implement user
interface, authorizations,
and roles
• Testing and training
• Deploy to production
• Adoption measurement
and value realization
analysis
• Improvement area
discovery
• Communication within
organization
Methodology approach overview
12 | SAP proprietary and confidential

13. Let’s Do It!
SAP proprietary and confidential | 13
If at least one of these questions rings true, you could realize significant benefits from putting
some intelligence into your processes.
Let’s do it together – now!
Are you able to
meet your
deadlines? If
no, how quickly
do you know it
and how can
you prevent it
from
happening?
Do you have
“black holes" in
your
organization,
where
processes
seem to
disappear?
Is your audit
department
comfortable
with your
purchasing
process
transparency?
Would you like
to speed up
your order-to-
cash process
but you don't
know where to
start?
Are you able to
properly
prioritize your
customers’
requests and
act promptly on
the most
important
ones?
Letizia Ciaccia
Business Transformation Services
Business Enterprise Principal Consultant
SAP Italia S. p. A.
Via Amsterdam, 125
00144 Roma
T +39 06 51073.304
M +39 335 5962880
F +39 06 51956127
E letizia.ciaccia@sap.com
http://www.sap.com/italy

16. www.sap.com/contactsap
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